Posted: March 27, 2020
Rapid City
Agenda Item Summary

Agenda Item Ref. #: 20TIF004 - Request to create an economic Tax Increment District for Orchard Meadows Lift Station

Agenda Item Title:

20TIF004 - Request to create an economic tax increment district for Orchard Meadows Lift Station

Origination Group:
TIF District Review Committee
Origination Meeting Date:
03/31/2020
Petitioner:
Yasmeen Dream LLC
Staff Contact:
Patsy Horton
Location:
Southeast Quadrant of Elk Vale Road and SD Highway 44
Agenda Item Summary:
The proposed tax increment district will provide tax increment funding to design and construct a Rapid Valley Sanitary District lift station located within Orchard Meadows Subdivision. The proposed district overlays TID 78 – Unnamed Tributary Drainage Channel. Any increment generated is directed to TID 78 for full repayment before increment funds are allocated to the proposed tax increment district.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
$807,215 RVSD Lift Station
$50,000 Professional Fees
$40,361 Contingency Costs
$361,321 Financing/Interest (7.0%)
$20,000 Imputed Administrative Fee (interest free)
$1,278,896 Total TIF Financed Expenditures

Recommendations:

Origination Recommendation Notes:
Staff recommends denying the request to create the Orchard Meadows Lift Station tax increment district as it does not meet Item 3(5) of the Allowable Project Costs as follows: 3. Allowable Project Costs: To accomplish the purposes of Tax Increment Financing, the following costs are determined to be allowable costs: 5. Regional lift stations, pump stations or other public facilities to be owned by the City of Rapid City The proposed lift station is located within and will be owned and operated by the Rapid Valley Sanitary District. However, if the TIF Committee determines the proposal meets the intent of the TIF Policy, staff recommends that the TIF Committee direct staff to develop the associated Project Plan (as identified in the TIF Policy) for presentation to the Planning Commission, and that the City and Developer enter into an agreement with Rapid Valley Sanitary District to ensure that Rapid Valley Sanitary District will provide on-going funds for maintenance and operation of the proposed lift station until the lift station has been decommissioned.

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